New initiatives to tackle International tax avoidance

The influence of the global economic downturn on the tax avoidance industry was one of the key issues for leaders of the Joint International Tax Shelter Information Centre (JITSIC) in Kyoto.

JITSIC leaders from Australia, Canada, China, Japan, United Kingdom and the United States reviewed successes and decided on JITSIC's future direction.

The JITSIC countries agreed to continue their joint efforts to curb abusive tax avoidance transactions, arrangements, and schemes and to broaden JITSIC's activities against cross-border transactions involving tax compliance risk. Use of off-shore arrangements to avoid tax will also come under close scrutiny. There will also be a fresh focus on the ways in which some high wealth income taxpayers artificially minimize their tax liabilities.

The Right Honourable Stephen Timms MP, Financial Secretary to the Treasury said: "The vast majority of taxpayers pay their fair share and do not seek to avoid their financial responsibilities. The avoidance industry seeks to profit from enriching those who are prepared to seek an unfair advantage over those who play by the rules. This in turn denies member countries vital financial resources. It is these injustices that JITSIC tackles and I am delighted that in doing so it goes from strength to strength."

Dave Hartnett, HMRC Permanent Secretary for Tax said: "JITSIC's work has led to major improvements in international tax compliance and much improved co-ordination of the international drive to combat unfair tax avoidance. JITSIC is adapting fast to global economic circumstances by concentrating on the effects of the world economic down turn to ensure that member states will not be unfairly denied vital tax revenues."